Black Friday sales were brisk, but analysts remained negative about the overall holiday shopping season. Meanwhile, world markets fell in overnight trading on worries of a steep economic slowdown in China and Europe. The Dow tumbled more than 250 points to 8550 while Nasdaq lost nearly 50 points to 1485.
On the upside
Shares of Mentor Corp. (NYSE: MNT) nearly doubled in value after Johnson & Johnson (NYSE: JNJ) offered more than $1 billion in cash to buy the cosmetic product and breast implant maker.Automakers are scheduled to report November U.S. auto sales on Tuesday while appearing before Congress a second time to ask for $25 billion in loans. Shares of General Motors (NYSE: GM) and Ford (NYSE: F) edged higher. Chrysler is managed by a private equity firm.
U.S. private equity group KKR planned to bid for Telvent GIT (Nasdaq: TLVT), an information technology company with solutions in the healthcare, public administration, and managed services areas.
On the downside
General Growth Properties (NYSE: GGP) received a 2 week reprieve on more than $900 million in mortgage loans, but analysts believe the staggering debt may lead to a bankruptcy filing for the nation's 2nd largest shopping mall owner unless it can sell of its Las Vegas properties.
Emerson Electric (NYSE: EMR) revealed lower October order rates due to a strong dollar eroding revenues from overseas sales.
One of Citigroup's funds (NYSE: C) agreed to take over a Spanish highway operator in a deal valued at $10 billion which includes $6.3 billion in debt.
In the broad market, declining issues outpaced advancers by a margin of nearly 6 to 1 on the NYSE and by 3 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks slid 40 points to 856.
